Amazon serves both the sellers and the buyers as they are the key players that help the platform make money. It is the exchange of things of value between the buyer and the sellers that bring money on the platform. Hence, Amazon has continued to invent solutions that help buyers and sellers complete the process of exchange smoothly. It is offering to produce, pack, store and deliver your goods to the buyers. Yes, you can just present your idea and get ready to pay the fees while Amazon will be ready to dispatch your stuff after getting it manufactured and packed. It was primarily designed as a book store and it has continued to offer support to the writers. Today, you can just present your content and the book publishing, as well as binding, will be done by Amazon. It is ready to do for the tees. And, that’s not all Amazon is offering fulfilment for every single product that is packed and sold on Amazon.

Amazon not only fulfils your orders on your behalf but also promotes your products. You are very likely to get the buy box for your product if you choose FBA as the fulfilment method. Buy box is a scenario that every seller dreams for its product. It highlights a product and keeps it in the search results against a specific keyword. But since, nothing comes free in the business world so a seller has to pay certain fees to avail of the FBA offers. Olifant digital has more to tell about how FBA works for the sellers. But you can also check the details below to know how much it costs to the sellers.

How Product Size and Weight Matter?

Amazon costs clients based on the product size, the greater the size the greater will be fulfilment costs. Similarly, it will cost the seller based on the weight of the product. The heavier products are likely to cost the seller more as compared to the lightweight items. One can bundle items if they are small to cut the costs but it is simply not possible when you are selling the larger items. Similarly, the costs are always going to rise if the items are slowing selling. But still, Amazon FBA is worth trying as it has a range of benefits for the sellers.

Pros and Cons of Using FBA As the Fulfillment Method

Amazon FBA works pretty well for the sellers but it costs a little at the same time. Sometimes that costs can be too much especially when the product is not selling that frequently or is larger. The inventory costs are likely to surge in all such scenarios. Amazon FBA is good when the product to be shipped is smaller in size and lighter in weight. Weight and size are directly proportional to the FBA fees. You can consult an Amazon marketing agency to know more about how the process works for the sellers. The other benefits and disadvantages are listed below.

Pros of FBA:

Costs might be your concern while looking to ship with Amazon. But before heading on to the costs let’s just see is it worth spending.
  • Effortless shipping and logistics. Amazon offers effortless shipping and logistics across the globe. You just need to submit a substantial level of inventory to the platform and it will keep shipping without asking your help in any case. It will handle all parts of the logistics on your behalf.
  • Low shipping costs. One may require spending a little extra while shipping through private logistics. But since Amazon is operating across the globe the FBA will cost you lesser than normal in many scenarios.
  • Customer service management. Amazon will handle customer relations on behalf of your business. It will take care of all kinds of business communications.
  • Quick delivery. It offers to deliver quicker than normal by using its platform.
  • Return and refunds management. Amazon will refund you for anything charged extra. It will also take care of the returns.

Cons:

  • Long-term storage fees. You are required to sell fast or inventory costs are bound to arise for you during FBA.
  • Product preparation requirements. You need to prepare for additional labelling.
  • More returns and more costs. It is a good option for the entities working with a running business but for beginners every mounting cost causes problems.

How Amazon FBA Fees are Calculated?

Although Amazon FBA cost calculators vary from region to region still there are some common factors that are taken into the account to calculate the FBA fees. One can consider the following factors before taking FBA as a fulfilment option. All FBA calculators will take the following factors into the account.

Selling plan

The most basic of all the fees that recur to every seller is the selling plan. The individual plan will cost about $0.99 per item sold while $39.99 per month is the fee suggested for the professional plan. Some additional fees may also incur to the sellers.

Fulfilment fees

These fees are particularly linked with the fulfilment by Amazon. The weight and size of the product will matter in this case. Amazon will also consider inbound and outbound shipping.

Referral fees

Amazon will also charge referral fees which are usually 8 to 15% in total. The amount will however vary from category to category. Amazon will charge it on every item sold.

Other costs

It includes product handling, preparation fees, picking, and packing. 30-day or long-term storage of items will also cost storage costs to the seller.

You can consult an Amazon agency or can calculate the costs on your own using the Amazon FBA fee calculators. You are not likely to be overcharged but if you think so you can claim the refunds. Amazon supports refund and will consider your request ASAP.

You Can Request Refunds

Amazon will not overcharge you more often but if by chance it does so, you can place a request for refunds. A re-estimation request can be placed to calculate the size and weight of the product on a fresh basis. The additional costs will be refunded in such a case.